On"buyback agreements":does the seller report the inventory he just sold with a buyback agreement n his books?

if X sold inventory to Y with a buyback agreement , does X report the inventory sold on its balance sheet?? or does y ? and WHY??

If inventory is sold with a buy-back agreement, it is still a sale, and the seller should report it on his books as a sale. Based on past experience, however, the seller may want to establish an estimated reserve for buying goods back.

If the seller's experience is that a certain proportion of goods is always returned, it would be appropriate to record the sale and reduce sales revenue by an allowance for anticipated returns. A business should always apply the conservatism principle in accounting which states that revenues should not be overstated.

You didn't say what country you're in (or what accounting principles you are following), but under US GAAP, if there is a buyback provision as you describe then the 'sale' of inventory does not meet revenue recognition criteria. It would still be an asset on X's books.